Rupee gains 9 paise on fag-end selling

Rupee gains 9 paise on fag-end selling

At the Interbank Foreign Exchange, the domestic unit resumed lower at 46.71/72 per dollar against yesterday's close of 46.69/70 per dollar. During trade, it dropped further to a low of 46.78 per dollar.

However, fag-end selling of dollars by banks in view of weakness of the American currency in the overseas market helped the rupee recoup its losses to close higher at 46.60/61 per dollar. The rupee hit a high of 46.58 against the US dollar during the day.

Forex dealers said the rupee gained even though the Indian benchmark Sensex ended lower by 29 points, or 0.16 per cent, on mild selling pressure in PSU, oil and gas and realty stocks on the back of lower Asian advices. They said this was on account of persistent foreign capital inflows into the equity market.

The rupee premium for the forward dollar also ended higher on fresh paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in December edged slightly higher to 85-87 paise from 84-1/2-86-1/2 paise on Wednesday and far-forward maturing in June also rose to 148-150 paise from 143-145 paise previously.

Meanwhile, in London, the dollar fell to a two-month low against the euro and a basket of currencies today amid heightened concerns about the outlook for the US economy.

Fed officials last month said they would be ready to consider additional steps to boost the US economy if an already softening outlook took a noticeable turn for the worse.

Meanwhile, global crude oil was trading above USD 77 a barrel in London today.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 46.74 and for the euro at Rs 59.47.

In cross currency trade, the domestic unit dropped against the pound sterling, the euro and the Japanese yen.

The rupee moved down further against the pound to end at Rs 71.55/57 per pound from Wednesday's close of Rs 71.20/22 and dropped against the euro to Rs 59.73/75 per euro from Rs 59.32/34 previously.

It also fell back against the yen to Rs 52.90/92 per 100 yen against yesterday's close of Rs 52.69/71.

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